China GDP shows strong growth, inflation eases but still high (AP) (16-04-2008)

BEIJING (AP) -- The strength in China's economy abated only by a little in the first quarter largely untouched by the concern affecting investors globally

The Chinese economy expanded by a still impressive 10.6 percent in January-March from a year earlier, down from the previous quarter's 11.2 percent rate, amid weaker global demand for exports and government steps to cool an investment boom.

Consumer prices rose 8.3 percent in March over the same month last year, down only slightly from February's 8.7 percent, the highest rate in nearly 12 years, according to the National Bureau of Statistics.

The price spike that began in mid-2007 has been blamed on shortages of pork, grain and other food. The government is trying to increase output by raising farm subsidies and curbing exports, but that effort was hampered by snowstorms in January and February that wrecked crops.

Taming inflation is the government's top priority, says Premier Wen Jiabao, the country's top economic official.

Communist authorities worry about a possible public backlash if prices keep rising rapidly. Bouts of high inflation in the 1980s and '90s sparked protests -- an embarrassment that Chinese leaders want to avoid ahead of this summer's Beijing Olympics, which is meant to showcase the country as prosperous and stable.

China's economy grew by 11.9 percent in 2007, but analysts expect that to fall as low as 9 percent this year. By contrast, Germany's 2007 growth rate was 2.5 percent.

Source AP